ANN ARBOR—The University of Michigan announced that it is creating a new position of chief investment officer, reporting directly to the U-M executive vice president and chief financial officer.

The responsibilities will include developing investment policies for all of the University’s financial assets (almost $4 billion), including asset allocation decisions and decisions regarding the retention of investment advisers.

These policies would then be recommended to the Board of Regents for its review and approval. The Regents will retain their responsibility for making decisions regarding the asset allocation and retention of investment managers. Historically, staffing the Board of Regents on this investment function had been part of the responsibilities of the U-M Treasurer’s Office.

Robert Kasdin, U-M executive vice president and chief financial officer, and Norman Herbert, U-M associate vice president and treasurer, have concluded that “the growing size of the endowment, as well as the increasing scope, importance and complexity of investment and treasury activities, make the creation of this new role prudent.” The University’s treasurer plays a central role in a host of non-investment activities that have also grown significantly in recent years. These will continue and will include oversight of policy formulation affecting the University’s balance sheet.

A search will be conducted with the assistance of Russell Reynolds Associates, a New York based executive recruiting firm.